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RENERGEN LIMITED - Replacement Information Regarding Conditional Helium Off-Take Agreement and Withdrawal of Cautionary Announcement

Release Date: 13/04/2021 10:58
Code(s): REN     PDF:  
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Replacement Information Regarding Conditional Helium Off-Take Agreement and Withdrawal of Cautionary Announcement

RENERGEN LIMITED
Incorporated in the Republic of South Africa
(Registration number: 2014/195093/06)
JSE Share code: REN
A2X Share code: REN
ISIN: ZAE000202610
LEI: 378900B1512179F35A69
Australian Business Number (ABN): 93 998 352 675
ASX Share code: RLT
(“Renergen” or “the Company”)

REPLACEMENT INFORMATION REGARDING CONDITIONAL HELIUM OFF-TAKE
AGREEMENT AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT

On 12 April 2021, domestic natural gas and helium producer Renergen released an ASX
announcement regarding a landmark conditional Phase 2 Helium contract that has been signed.

Following consultation with the ASX, the Company provides the following detail in replacing the
announcement made on 12 April 2021, because of not technically complying with ASX
Guidance Note 8 section 4.15. Investors and potential investors should not rely on the
announcement released on 12 April 2021 for their investment decisions.

Its first helium sales agreement for Phase 2 is with iSi Automotive GmbH (the customer) and is
the Company’s first “Direct-to-Customer” helium deal. The ten-year sales agreement commences
on the completion of construction of our Plant for Phase 2 of Virginia Gas Project
The completion of the feasibility studies for Renergen’s Virginia Gas projects’ Phase 2
development and is expected to be completed by the end of the 2nd quarter 2021 with a Financial
Investment Decision by the Board expected to be taken later this year.
The current expected completion date or completion time frame for construction of the Phase 2
Plant for the Virginia Gas Project is the latter part of calendar year 2023 based on current
estimates.

•    Note the following:

     ·   That the agreement is conditional upon completion of a number of project development
         milestones for the Virginia Gas Project (including completion of an EPC contract by the
         appointed EPC contractor in relation to Phase 2 of the Virginia Gas Project), and that
         either party may terminate due to a delay in the commencement date.
     ·   The agreement is a take-or-pay agreement – and the customer’s obligation is to
         purchase approximately 20 containers of helium per annum at a fixed base US$/MCF
         price (subject to annual CPI adjustments), as is consistent in the global helium
         upstream market.
     ·   Should the Company be unable to deliver at least 75% of annual take-or-pay quantities
         during 2 consecutive years once the plant is operational, the parties may terminate the
         contract.

The Company notes the speculation in the article in the AFR regarding the Company raising
capital, dated 13 April 2021. The Company will require capital in some form and at some stage
to commence construction of Phase 2 but is still in the process of considering options and
completing feasibility studies. The Company has not formally engaged with investors, nor has it
begun pricing guidance.

WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT

Shareholders are referred to the Company’s cautionary announcement released earlier
today, on 13 April 2021, on SENS and are hereby advised that given the release of the
information in this announcement, the trading halt on the Australian Stock Exchange has
been lifted.

Accordingly, caution is no longer required to be exercised by shareholders when dealing
in the Company’s securities.

Johannesburg
13 April 2021

Authorised by: Stefano Marani
Chief Executive Officer

Designated Advisor
PSG Capital

For Australian Investors & Media, contact Citadel-MAGNUS
Cameron Gilenko, 0466 984 953
www.renergen.co.za

Date: 13-04-2021 10:58:00
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